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In an article published on 1/15 in HR Daily Advisor, Segal McCambridge Shareholders Michael Luchsinger and Andrew Kates discuss the National Labor Relations Board’s most recent standard for determining when two or more entities are considered “joint employers” under the National Labor Relations Act. Due to the newest rule from 2023, they may be considered joint if each shares or codetermines one or more of several conditions of employment, such as working hours, tenure of employment, wages, etc.
“Joint employer status is now met if an entity has indirect control or simply reserves authority to control an essential term or condition,” the authors write. “As such, the 2023 Rule prevents employers from avoiding joint employer status and their bargaining obligations by using an intermediary to implement essential terms and conditions of employment.”
They advise HR departments to update their third-party vendor or staffing agency contracts because, under the revised rule, employers might be considered joint employers and accordingly subject to collective bargaining.
“Employers would be wise to consult legal counsel to navigate the 2023 Rule and ensure that they remain in compliance with, inter alia, fair labor standards,” wrote Luchsinger and Kates. “The National Labor Relations Board consistently presents complex and ever-changing standards for employers, and the expansion of joint employment is no exception.”
Read the story in full; click here.
